Impact of Covid-19 on tourism landscape and innovation

Abstract

Tourism industry in Greece is one of the pillars of the national economy with direct and indirect impacts on economic and social life. The vast natural, cultural, archaeological, culinary and other types of resources attract millions of visitors each year, contributing to the GDP of the country, employment and other socio-economic indicators. The covid-19 pandemic presented the most significant challenge to the Greek society in general and to tourism in particular. The immediate effects of the pandemic caused the GDP of the country to fall in levels below those recorded during the financial crisis in 2008. As the country navigated through the challenges of the pandemic and reopened its borders, there were many challenges in need to address in order for the tourism sector to recover. This paper focuses on evaluating the recovery process of the Greek tourism industry in the years following the coronavirus pandemic. More specifically, it analyzes the performance of the tourism sector in terms of the number of visitor arrivals, nights spent and expenditures. This analysis is important to understand the challenges faced on the road to recovery in terms of the performance returning to the same levels as before the health crisis. This study employs a literature review and bases its analysis on data provided by the Greek Statistical Authority on evaluating the performance of the tourism industry. Findings show that the Greek industry required almost four years since the outbreak of the pandemic in order to get close to the levels of performance similar to those recorded before the crisis. As this sector continues its positive trajectory in terms of the expenditures of visitors, number of arrivals and nights of stay, there are many challenges that lie ahead in terms of the global geopolitical instability, environmental concerns and the need to use the resources in a sustainable way. As such, this study points to opportunities relating to digital channels of communication and marketing, reduction of seasonality issues and diversification of attractions as strategies to remain competitive and sustainable.